CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT Lowers Position in Hess Midstream Partners LP $HESM

Key Points

• Cushing Asset Management cut its stake in Hess Midstream Partners by 41.4% in Q4, selling 960,000 shares and leaving it with 1,357,200 shares (~0.65% of HESM) worth about $46.8 million (its 15th largest holding).
• Hess Midstream raised its quarterly dividend to $0.7641 (annualized $3.06), producing a ~8.1% yield, but the dividend payout ratio is very high at 106.99%, which could raise sustainability concerns.
• Analysts mostly rate HESM a Hold (consensus target $40.71) amid mixed broker actions, while the stock trades near $37.87 with a P/E of ~13.2 and a market cap around $7.9 billion.

CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT lessened its holdings in Hess Midstream Partners LP (NYSE:HESM - Free Report) by 41.4% during the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor owned 1,357,200 shares of the company's stock after selling 960,000 shares during the period. Hess Midstream Partners accounts for approximately 2.7% of CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT's portfolio, making the stock its 15th largest holding. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT owned approximately 0.65% of Hess Midstream Partners worth $46,823,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Alps Advisors Inc. raised its position in shares of Hess Midstream Partners by 1.2% in the third quarter. Alps Advisors Inc. now owns 29,295,245 shares of the company's stock worth $1,012,151,000 after buying an additional 338,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in shares of Hess Midstream Partners in the third quarter worth $187,691,000. JPMorgan Chase & Co. raised its position in shares of Hess Midstream Partners by 179.3% in the third quarter. JPMorgan Chase & Co. now owns 2,269,146 shares of the company's stock worth $78,399,000 after buying an additional 1,456,627 shares in the last quarter. UBS Group AG raised its position in shares of Hess Midstream Partners by 10.1% in the third quarter. UBS Group AG now owns 1,969,242 shares of the company's stock worth $68,037,000 after buying an additional 180,615 shares in the last quarter. Finally, CIBC Bancorp USA Inc. purchased a new stake in shares of Hess Midstream Partners in the third quarter worth $58,480,000. Hedge funds and other institutional investors own 98.97% of the company's stock.

Analyst Ratings Changes

A number of brokerages recently issued reports on HESM. Raymond James Financial downgraded Hess Midstream Partners from an "outperform" rating to a "market perform" rating in a research report on Monday, January 5th. Zacks Research upgraded Hess Midstream Partners from a "strong sell" rating to a "hold" rating in a research report on Monday, March 2nd. Wells Fargo & Company raised their price target on Hess Midstream Partners from $39.00 to $40.00 and gave the company an "equal weight" rating in a research report on Friday, March 13th. Finally, Weiss Ratings upgraded Hess Midstream Partners from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, March 2nd. One equities research analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, Hess Midstream Partners presently has an average rating of "Hold" and a consensus target price of $40.71.

Hess Midstream Partners Trading Up 0.2%

NYSE HESM opened at $37.87 on Friday. The stock's 50-day simple moving average is $38.55 and its two-hundred day simple moving average is $35.58. Hess Midstream Partners LP has a twelve month low of $31.63 and a twelve month high of $44.14. The company has a quick ratio of 0.85, a current ratio of 0.85 and a debt-to-equity ratio of 8.54. The company has a market capitalization of $7.87 billion, a price-to-earnings ratio of 13.24 and a beta of 0.58.

Hess Midstream Partners (NYSE:HESM - Get Free Report) last released its quarterly earnings results on Monday, February 2nd. The company reported $0.72 earnings per share for the quarter, meeting analysts' consensus estimates of $0.72. The business had revenue of $374.50 million for the quarter, compared to the consensus estimate of $419.16 million. Hess Midstream Partners had a return on equity of 74.89% and a net margin of 21.77%.The company's revenue for the quarter was up 2.1% on a year-over-year basis. During the same quarter last year, the business posted $0.68 earnings per share. Research analysts forecast that Hess Midstream Partners LP will post 2.5 EPS for the current fiscal year.

Hess Midstream Partners Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Thursday, February 5th were issued a $0.7641 dividend. This is an increase from Hess Midstream Partners's previous quarterly dividend of $0.75. This represents a $3.06 annualized dividend and a dividend yield of 8.1%. The ex-dividend date was Thursday, February 5th. Hess Midstream Partners's dividend payout ratio (DPR) is presently 106.99%.

Hess Midstream Partners Company Profile

Hess Midstream Partners LP, formerly traded on the New York Stock Exchange under the ticker HESM, is a midstream energy partnership that owns, operates and develops crude oil, natural gas and produced water infrastructure in the Williston Basin. The company’s assets include crude oil gathering and transportation systems, saltwater disposal wells, natural gas processing and fractionation plants, and associated pipeline and storage facilities. Its integrated network is designed to support upstream production by providing gathering, processing, storage and marketing services for hydrocarbons and produced water.

Headquartered in Houston, Texas, Hess Midstream Partners primarily serves producers operating in North Dakota and Montana’s Bakken Shale region.

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